Character.ai has replaced several popular AI chat models with a new set called Pipsqueak 2, prompting backlash from users and leading to new lawsuits and stricter usage restrictions. The company also added more advertisements, promoted a new animated video feature, implemented invasive age verification measures, and introduced additional content filters.

The Pipsqueak 2 model update has drawn widespread criticism on the r/CharacterAI subreddit, where hundreds of posts condemn the changes. Top post titles include “Character ai is dead.” “CharacterAI, this is the single worst mistake you have EVER made.” and “They finally shot themselves in the foot. RIP C.AI.” A feedback megathread about Pipsqueak 2 posted by Character.ai employees has drawn nearly 1,000 comments, almost all negative.

Users have described Pipsqueak 2 as a downgrade from previous models. One user said the new model feels “lobotomized” and generic, adding that it tends to narrate action rather than engage in dialogue. Others called it “the worst model yet.” and “It honestly may be the worst chat style to exist on the platform.” A top comment in the feedback thread read, “I HATE pipsqueak 2. It’s way over dramatic, I can’t stand it.” Another user wrote, “Terrible compared to the models you got rid of. Thanks for nothing.”

In response to the backlash, multiple new subreddits—including CharacterAIRevolution, CAIRevolution, Characterai_rebellion, characteraiventing, and CharacteraiResistance—have emerged as spaces for users to seek alternatives or organize opposition to the changes. Free users have also faced new usage restrictions in recent weeks.

Character.ai, one of the most popular AI companion chatbot apps, allows users to create virtual characters for companionship, romantic relationships, entertainment, and role-playing. The company is currently facing lawsuits from the families of users who died by suicide after using the app, as well as legal action from the state of Pennsylvania after AI characters on the platform claimed to be licensed medical professionals.